Strengthening U.S. Cellular’s
regional presence broadens its coverage area, making
the calling experience even better for customers,
especially when traveling.
Strengthening the areas where it offers service—its
footprint—particularly in the Midwest and Northeast
regions, is another important way U.S. Cellular
is driving growth. Over the past three years, U.S.
Cellular has launched new service in 12 new markets,
including Chicago. All the new market launches build
on the company’s existing footprint. The company
launched service in Chicago in 2002, solidifying
its position in its largest region, the Midwest.
2003 saw the launch of eight markets, all complementing
the Midwest region’s footprint—Enid and Stillwater,
Okla.; Omaha, Neb.; Council Bluffs, Iowa; St. Joseph,
Mo.; Rochester, Minn.; and South Bend and Fort Wayne,
Ind.
In 2004, U.S. Cellular launched service in three markets, all acquired as part of a property exchange with AT&T Wireless—now Cingular Wireless—in August 2003. The company began offering service in Oklahoma City, Okla. (now the company’s third-largest market served after Chicago and Milwaukee) and Lincoln, Neb. in July, followed a month later by the launch of service in Portland, Maine. And U.S. Cellular’s three newest markets are all doing well—new customer activations have exceeded expectations.
In 2005, in addition to broadening coverage and enhancing service to customers throughout its markets, U.S. Cellular plans to introduce service to customers in St. Louis, Mo. With a total estimated market population of more than 2.9 million, St. Louis will become U.S. Cellular’s second-largest market after Chicago. The expanded service area will not only provide opportunities for growth, it will also improve service for U.S. Cellular customers in the Midwest.
Along with strengthening U.S. Cellular’s existing footprint, the company has been taking steps to divest non-strategic properties. In 2004, the company divested non-strategic operations in southern Texas, Florida, Georgia and Ohio. Proceeds from the divestitures were used to help fund the buildout of the new markets and for other corporate purposes.
Despite these divestitures, U.S. Cellular’s customer base grew admirably in 2004. The company added a record 627,000 net new customers, not including the divestitures, a 40 percent increase over 2003. By the end of 2004, U.S. Cellular was serving almost 5 million customers in 25 states, representing a 12 percent growth in the customer base over the previous year.
With its footprint initiatives, U.S. Cellular is expanding its service areas in the company’s key regions, which means better coverage for its customers. And because many of U.S. Cellular’s service areas are in rural areas, where wireless penetration remains at less than 60 percent of the population, the company has additional opportunities to add to its customer base. With its reputation for service excellence and integrity, the company is well positioned for growth.
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